/raid1/www/Hosts/bankrupt/TCRLA_Public/051216.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, December 16, 2005, Vol. 6, Issue 249
Headlines
A R G E N T I N A
AEROLINEAS ARGENTINAS: Pressing for Fare Increase
COMPANIA DEPORTIVA: Gets Court Approval to Reorganize
CORMOSA S.A.: Enters Bankruptcy on Court Orders
MAR DEL PLATA: Judge Authorizes Bankruptcy
SAFEWAY S.A.: Petitions for Reorganization
SAPORE DI PANE: Debt Payments Halted, Moves to Reorganize
SINEX S.A.: Court OKs Creditor's Involuntary Bankruptcy Motion
TRANSENER: Fitch Ups Rating to BB(arg)
B E R M U D A
INTELSAT: Millicom Taps Company for Cellular Backhaul Services
LORAL SPACE: Discovery Continues NY Securities Lawsuit V. Execs
B R A Z I L
BANCO BMG: Moody's Assigns Ba3 Rating with Stable Outlook
BANCO BMG: Sets Initial Price Guidance for Upcoming Bond Issue
BEC: SC Authorizes Central Bank to Proceed with Privatization
CELPA/CEMAT: IDB Okays $331.4M Loan
CFLCL: Ratings Reflect Aggregated Businesses' State
SABESP: To Reduce Commercial, Residential Rates' Disparity
VARIG: Docas Deal Cues TAP to Withdraw From Bidding
C A Y M A N I S L A N D S
BAILEY COATES: To be Placed into Voluntary Winding Up
BOTL ASSET: Proofs of Debt Due Jan. 12
CALLIDUS EUROPEAN: Kicks Off Voluntary Liquidation
CALLIDUS EUROPEAN (MASTER): To be Voluntarily Liquidated
CASA PREFERRED: Voluntary Liquidation Begins
CYDONIA CAPITAL: To Wind Up Voluntarily
EISBERG FINANCE: Enters Into Voluntary Liquidation
FERRUM FUND: Appoints Liquidators for Wind Up
C O L O M B I A
TENDERCO: Announces Expiration, Termination of Offer
M E X I C O
AEROMEXICO: Conesa to Remain as Head of Airline
ASARCO: Ten Affiliates Want Until March 7 to File a Plan
EMPRESAS ICA: Seeks to Complete GACN Deal Before Year-End
TV AZTECA: Azteca America Inks Affiliation Accord With Comcast
P U E R T O R I C O
CENTENNIAL COMMUNICATIONS: Discloses 2nd Qtr. Operating Results
- - - - - - - -
=================
A R G E N T I N A
=================
AEROLINEAS ARGENTINAS: Pressing for Fare Increase
-------------------------------------------------
Struggling to operate amid rising costs for fuel and salaries,
flagship carrier Aerolineas Argentinas is seeking government
approval to increase fares, reports Dow Jones Newswires.
According to local media, Gerardo Diaz Ferran, the head of
Spanish travel company Marsans, which owns Aerolineas
Argentinas, mentioned the possibility of a fare hike in a
meeting with Argentine Cabinet Chief Alberto Fernandez in
Madrid.
"Fares haven't moved in four years and costs have risen
significantly, not only for wage increases, but also because of
the price of oil," Diaz Ferran was quoted as saying.
"When costs go up, there's no other remedy for increased income
other than through fares. It's an issue that has to be discussed
with the government."
Aerolineas Argentinas recently negotiated a truce to a bitter
labor dispute with its pilots and mechanics unions, which had
gone on strike for eight days to demand a 35% increase in
salaries.
The Company had agreed to a one-off payment for the workers, but
the employees want that amount to be incorporated into their
base wage. Airline officials admit they can't afford to meet the
workers' salary demands. Negotiations are ongoing and the unions
say they could walk off the job again in three months if they're
unhappy with the Company's proposal.
COMPANIA DEPORTIVA: Gets Court Approval to Reorganize
-----------------------------------------------------
Compania Deportiva S.A. will begin reorganization following the
approval of its petition by Court No. 4 of Buenos Aires' civil
and commercial tribunal. The opening of the reorganization will
allow the Company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.
Ms. Beatriz Rosa Mazzaferri will oversee the reorganization
proceedings as the court-appointed trustee. She will verify
creditors' claims until Feb. 27, 2006. The validated claims will
be presented in court as individual reports on April 10, 2006.
Ms. Mazzaferri is also required by the court to submit a general
report essentially auditing the Company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. The report will be presented
in court on May 26, 2006.
An Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on Nov. 22, 2006.
Clerk No. 8 assists the court on the case.
CONTACT: Ms. Beatriz Rosa Mazzaferri, Trustee
Lavalle 1459
Buenos Aires
CORMOSA S.A.: Enters Bankruptcy on Court Orders
-----------------------------------------------
Cormosa S.A. enters bankruptcy protection after Court No. 4 of
Cordoba's civil and commercial tribunal ordered the Company's
liquidation. The order effectively transfers control of the
Company's assets to a court-appointed trustee who will supervise
the liquidation proceedings.
Infobae reports that the court selected Ms. Maria Ester Medina
as trustee. Ms. Medina will be verifying creditors' proofs of
claim until the end of the verification phase on Feb. 28, 2006.
Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on April 11, 2006 followed by the general report, which is due
on June 28, 2006.
CONTACT: Cormosa S.A.
Velez Sarsfield 1358
Cordoba
Ms. Maria Ester Medina, Trustee
Avda. Colon 350
Ciudad de Cordoba (Cordoba)
MAR DEL PLATA: Judge Authorizes Bankruptcy
------------------------------------------
Mar del Plata Salud S.A. was declared bankrupt after Court No.
10 of Buenos Aires' civil and commercial tribunal endorsed the
petition of American Cleaning Center S.A. for the Company's
liquidation. Argentine daily La Nacion reports that American
Cleaning Center S.A. has claims totaling $1,242.14 against Mar
del Plata Salud S.A.
The court assigned accounting firm Cesar Stock to supervise the
liquidation process as trustee. Cesar Stock will validate
creditors' proofs of claims until Feb. 28, 2006.
The city's Clerk No. 19 assists the court in resolving this
case.
CONTACT: Mar del Plata Salud S.A.
Combate de los Pozos 47
Buenos Aires
Cesar Stock, Trustee
Corrientes 4149
Planta Baja
SAFEWAY S.A.: Petitions for Reorganization
------------------------------------------
Safeway S.A., a company operating in Buenos Aires, has filed for
bankruptcy after failing to pay its liabilities.
La Nacion relates that the case is pending before Court No. 9 of
Buenos Aires' civil and commercial court. Clerk No. 17 assists
on this case.
CONTACT: Safeway S.A.
Juan B. Justo 9250
Buenos Aires
SAPORE DI PANE: Debt Payments Halted, Moves to Reorganize
---------------------------------------------------------
Court No. 7 of Buenos Aires' civil and commercial tribunal is
studying the request for reorganization submitted by local
company Sapore di Pane S.A., says La Nacion.
The report adds that that the Company filed a "Concurso
Preventivo" petition following cessation of debt payments on
November 11.
The city's Clerk No. 13 assists the court on this case.
CONTACT: Sapore di Pane S.A.
Melian 1810
Buenos Aires
SINEX S.A.: Court OKs Creditor's Involuntary Bankruptcy Motion
--------------------------------------------------------------
Court No. 12 of Buenos Aires' civil and commercial tribunal
declared Sinex S.A. bankrupt, says La Nacion. The ruling comes
in approval of the petition filed by the Company's creditor,
Banco Frances S.A.
Ms. Vila Perbeils will examine and authenticate creditors'
claims until March 7, 2006. This is done to determine the nature
and amount of the Company's debts. Creditors must have their
claims authenticated by the trustee by the said date in order to
qualify for the payments that will be made after the Company's
assets are liquidated.
Clerk No. 24 assists the court on the case, which will conclude
with the liquidation of the Company's assets.
CONTACT: Sinex S.A.
Humberto Primo 986
Buenos Aires
Ms. Vila Perbeils, Trustee
Vidal 2670
Buenos Aires
TRANSENER: Fitch Ups Rating to BB(arg)
--------------------------------------
The Argentine arm of Fitch Ratings has upgraded to BB(arg) from
B(arg) its rating on the country's largest power transmission
company, Compania de Transporte de Energia Electrica en Alta
Tension TRANSENER S.A., reports Business News Americas.
The upgrade reflects the expected sizable cash flow improvement
resulting from the government's recent approval of the agreement
between Transener and UNIREN - an entity created by the
government to renegotiate the concessions for public service
companies. The agreement incorporates a 31% tariff increase at
Transener.
Nevertheless, Fitch noted that the cash flow depends on the rate
at which tariffs are adjusted in line with rising costs due to
inflation.
Transener has a 95-year concession contract to operate and
maintain most of the high-tension transmission lines in
Argentina, and to operate and maintain for 15 years the 1,300-
kilometer high-tension transmission line built by the company
between the Comahue region and Buenos Aires.
Transener is controlled by Citelec S.A., which is in turn
controlled equally by Dolphin Fund Management and Petrobras
Energia S.A..
CONTACT: TRANSENER S.A.
Paseo Colon 728 6th Floor
(1063) Buenos Aires
Republica Argentina
Tel: (54-11) 4342-6925
Fax: (54-11) 4342-7147
Email: info-trans@transx.com.ar
Web site: http://www.transener.com.ar
=============
B E R M U D A
=============
INTELSAT: Millicom Taps Company for Cellular Backhaul Services
--------------------------------------------------------------
Intelsat announced Wednesday that it has signed a long-term,
multi-million dollar contract with Millicom International
Cellular S.A. (Millicom), Chad's newest mobile operator, to
provide cellular backhaul services to multiple locations within
the country. Services have already been launched in the capital
city of N'Djam‚na and will be available to six other major
cities in Chad over the next few months. In addition to
providing Millicom with domestic cellular backhaul, Intelsat is
carrying its international link. Intelsat now provides
satellite-based cellular backhaul services to more than 60
mobile operators worldwide.
Millicom was awarded a 10-year license to operate a GSM 900
wireless telephony network in Chad within the past year and is
utilizing Intelsat's 702 satellite, which hosts a growing
community of mobile operators, to provide its domestic service.
The international link is provided with Intelsat's
GlobalConnexSM Internet Trunking Service, using the company's
European facilities, which enables carriers to interconnect
through IP protocols at major telecommunication houses
worldwide.
"Taking advantage of satellite technology, and specifically
Intelsat's network, we are able to extend our coverage into
multiple new areas domestically and internationally with very
little capital investment," said Mr. Abdourahmane Seck, Chief
Technology Officer at Millicom. "The capacity they offer over
Africa and the Middle East is ideal to support our needs cost-
effectively and with significant flexibility to allow for
maximum growth potential."
Ramu Potarazu, Chief Operating Officer of Intelsat, stated,
"Research has shown that an increase in the number of mobile
subscribers generates an increase in a country's gross domestic
product; Intelsat has been a significant contributor to the
development and growth of mobile operators in Africa, which we
believe very positively benefits the region. Mobile
telecommunications is exploding in many areas of the world and
Intelsat is committed and well positioned to serve this growing
market segment."
Intelsat is a global communications provider offering flexible
and secure services to customers in over 200 countries and
territories. Intelsat has maintained a leadership position for
over 40 years by distributing video, voice, and data for
television and content providers, government and military
entities, major corporations, telecommunications carriers, and
Internet service providers. Intelsat's reach, power and
expanding solutions portfolio deliver information reliably and
quickly to every corner of the globe.
CONTACT: Intelsat
E-mail: media.relations@intelsat.com
Phone: 1 202-944-7500
LORAL SPACE: Discovery Continues NY Securities Lawsuit V. Execs
---------------------------------------------------------------
Discovery continues in the class action filed against two Loral
Space & Communications Ltd. executives in the United States
District Court for the Southern District of New York.
In November 2003, plaintiffs Tony Christ, individually and as
custodian for Brian and Katelyn Christ, Casey Crawford, Thomas
Orndorff and Marvin Rich filed a purported class action
complaint against Bernard Schwartz, the Company's chief
executive officer and chairman of the board of directors and
Richard J. Townsend, the Company's executive vice president. The
complaint alleges:
(1) that defendants violated Section 10(b) of the Exchange
Act and Rule 10b-5 promulgated thereunder, by making
material misstatements or failing to state material
facts about the Company's financial condition relating
to the restatement in 2003 of the financial statements
for the second and third quarters of 2002 to correct
accounting for certain general and administrative
expenses and the alleged improper accounting for a
satellite transaction with APT Satellite Company Ltd.
and
(2) that each of the defendants are secondarily liable for
these alleged misstatements and omissions under Section
20(a) of the Exchange Act as an alleged "controlling
person" of Loral.
The class of plaintiffs on whose behalf the lawsuit has been
asserted consists of all buyers of Company common stock during
the period from July 31, 2002 through June 29, 2003, excluding
the defendants and certain persons related to or affiliated with
them. In October 2004, a motion to dismiss the complaint in its
entirety was denied by the court. Defendants filed an answer to
the complaint in December 2004. Discovery has commenced and is
ongoing. The parties have requested a stay of discovery pending
the outcome of mediation scheduled for January 2006.
The suit is styled "Hull v. Schwartz, case no. 1:03-cv-07829-
JES," filed in the United States District Court for the Southern
District of New York, under Judge John E. Sprizzo. Representing
the plaintiffs are:
(1) Lauren D. Antonino, Martin D. Chitwood, Chitwood &
Harley, 2300 Promenade II 1230 Peachtree Street, NE
Atlanta, GA 30309, Phone: (404) 873-3900
(2) Christopher Scott Hinton, Frederick Taylor Isquith,
Sr., Wolf Haldenstein Adler Freeman & Herz LLP 270
Madison Avenue New York, NY 10017, Phone: (212) 545-
4600, E-mail: isquith@whafh.com. (Class Action Reporter,
Friday, Dec. 9, 2005, Issue 244)
===========
B R A Z I L
===========
BANCO BMG: Moody's Assigns Ba3 Rating with Stable Outlook
---------------------------------------------------------
Moody's Investors Service assigned a Ba3 long term foreign
currency rating to Banco BMG S.A.'s senior unsecured notes to be
issued in an amount up to US$300,000,000. The outlook on the
rating is stable.
Moody's stated that the Ba3 rating incorporates Banco BMG's
fundamental credit quality, which is reflected by its Ba3 global
local currency deposit rating and which includes all relevant
country risks. The Ba3 rating also incorporates the probability
of a sovereign default implied by the Brazilian government's
sub-investment grade Ba3 foreign currency bond rating, as well
as the likelihood that the Brazilian government could impose a
debt moratorium in the event of default on its own foreign
currency obligations.
Moody's noted that the rating also addresses the risk that any
such moratorium might include foreign currency bonds and that
BMG's bonds might particularly be affected. Because the banking
system is an instrument of the government's monetary and foreign
exchange policy, Moody's believes that, in general, banks may
have a lower probability of having their bonds exempted from a
moratorium than would, say, a major commodity exporter. The
rating, therefore, indicates the joint probabilities of default
that are contained in the Ba3 foreign currency ceiling and in
the local currency rating of Banco BMG.
Banco BMG is headquartered in Minas Gerais, Brazil and had R$3.1
billion (approximately US$1.4 billion) in total assets as of
September 30, 2005.
BANCO BMG: Sets Initial Price Guidance for Upcoming Bond Issue
--------------------------------------------------------------
Banco BMG has set an initial price guidance of between 9.5% and
9.75% for its planned bond issue, Dow Jones Newswires reports,
citing a person close to the deal.
The bank, according to a syndicate note provided by a fund
manager earlier this week, aims to sell them with a final
maturity of 10 years. The issue will have an average life of
eight years, and will start to amortize after six years.
Morgan Stanley is the sole book runner for the issue, which will
be placed in the 144a securities market.
Banco BMG will use the proceeds from the debt issue to fund the
growth of its credit portfolio and for general corporate
purposes.
BEC: SC Authorizes Central Bank to Proceed with Privatization
-------------------------------------------------------------
The Brazilian Central Bank has secured authorization from the
Supreme Court to go ahead with a privatization auction of state-
owned bank Banco do Estado do Ceara (BEC), reports Dow Jones
Newswires.
The Central Bank suspended the auction in October in light of a
lower court ruling that the buyer of BEC would not be entitled
to maintain the bank's traditional monopoly over state
government accounts, including state employee salary accounts.
The Supreme Court however recently issued a ruling, authorizing
the future buyer of BEC to assume state employee salary
accounts.
Brazil's three largest private banks, Bradesco (NYSE: BBD), Itau
(NYSE: ITU), and Unibanco (NYSE: UBB), along with GE Consumer
Finance had pre-qualified to bid for BEC. The minimum price for
BEC had been set at BRL542 million (US$240mn).
Brazil's federal government owns 99% of BEC, and the bank's
employees will have a chance to buy 10% of the government shares
at a discount.
With the Supreme Court decision, the central bank may attempt to
conclude the privatization of BEC yet in 2005. If the process is
postponed until next year, the monetary authority will need to
repeat an evaluation of BEC ahead of the privatization auction.
CELPA/CEMAT: IDB Okays $331.4M Loan
-----------------------------------
The Inter-American Development Bank approved Wednesday $216.9
million in financing for Centrais Eletricas do Para S.A. (CELPA)
and a $114.5million financing to Centrais Eletricas
Matogrossenses S.A. (CEMAT) to support the expansion and
upgrading of their electricity distribution systems in Brazil.
Both firms were created as state-owned companies to supply
electricity to Para and Mato Grosso and later privatized in the
late 1990s through a public bidding process won by Grupo Rede.
These companies are presently among Rede's largest
concessionaries with a 30-year renewable concession granted at
the time of privatization.
Grupo Rede is one of the largest private companies operating in
Brazil's energy sector for generation, distribution and trade of
electricity and its distribution companies cover approximately
30 per cent of the country's territory. Rede currently supplies
electricity to around 2.7 million consumers in the states of
Para, Tocantins, Mato Grosso, Sao Paulo, Minas Gerais and
Parana. It is completely owned by Brazilian capital.
Centrais Eletricas do Para S.A.
The IDB loan will help finance CELPA's 2005-2007 investment
program for capital expenditures of $593.3 million that will
allow the company to provide electricity to new customers in
rural and urban areas, achieve productivity gains and reduce
costs and improve the quality and reliability of its
distribution network system.
CELPA distributes electricity to the entire state of Para and 50
per cent of its 1,287,000 residential customers are low-income
consumers. Its new program will target additional rural low-
income populations. The population of the state is 6.7 million.
The project will reduce the risk of energy shortages and
interruptions in the system increase electricity coverage and
improve living standards of the population.
The IDB financing includes an "A-loan" of up to $75 million from
the Bank's ordinary capital and a syndicated loan, the "B-loan",
of up to $141.9 million, consisting of resources from financial
institutions that subscribe participation agreements with the
IDB.
Centrais Eletricas Matogrossenses S.A.
CEMAT is an electricity generation and distribution company that
serves the state of Mato Grosso that has a population of 2.7
million inhabitants. It currently serves 772.890 clients.
The company has a 2005-2007 investment program of $316.8 million
to expand and modernize its electrical network and business
management support systems. It will expand its high-voltage
distribution lines, rural and urban electrification, renovate
the distribution lines and improve the distribution system
quality.
The IDB financing includes an "A-loan" of up to $75 million from
the Bank's ordinary capital and a syndicated loan, the "B-loan",
of up to $39.5 million from financial institutions that
subscribe participation agreements with the IDB.
The amortization period of loans for both projects will be of up
to 9 years for the "A-loans" and up to 6 years for the "B-loans"
with a three-year grace period, at an interest rate based on
LIBOR.
CONTACT: Inter-American Development Bank
Website: http://www.iadb.org/
CFLCL: Ratings Reflect Aggregated Businesses' State
---------------------------------------------------
Corporate Credit Rating: B+/Negative/--
Business risk profile: Fair
Financial risk profile: Leveraged
Rationale
On Nov. 7, 2005, Standard & Poor's Ratings Services assigned its
'B+' foreign and local currency corporate credit rating to
Brazil-based electric distribution utility Companhia Forca e Luz
Cataguazes-Leopoldina (Cataguazes-Leopoldina) in its global
scale. The company's rating in the Brazil national scale is
'brBBB+'. The outlook on both scales is negative.
The ratings on Cataguazes-Leopoldina reflect the aggregated
businesses managed by the Cataguazes group on a consolidated
basis.
In the first six months of 2005, the Cataguazes group's
consolidated figures showed stable results and operating cash
generation. EBITDA for first-half 2005 was BrR188 million
compared with BrR176 million in first-half 2004. The stability
was propagated to the ratios related to funds from operations
(FFO), which reached BrR56 million as opposed to BrR50 million
in June 2004. FFO to total debt was 9.1% (8.8% in first-half
2004) and FFO to interest coverage reached 1.38x (compared with
1.4x in June 2004). Those ratios continue to be pressured by a
high interest burden stemming from its very costly bank debt
showed in the figures for first-half 2005. However, as the group
partially refinanced with lower costs (by issuing a credit
receivable investment fund (FIDC) and a bank loan facility
(CCB)), is placing 18-month US$30 million short-term notes, and
is planning to place more than BrR300 million in other
structures (among the new long-term deal and syndications) also
with lower costs; those measures should be able to reduce its
interest burden from now on, directly affecting the FFO
generation in a positive fashion.
The Cataguazes group has taken several actions during 2005 to
drop the high level of expensive short-term debt, including the
sale of several generation assets and the issue of longer-term
transactions with lower costs. The actions included:
- In the second quarter of 2005, the group concluded the sale
of its power generation subsidiary Cat-Leo Energia, raising
BrR176 million and transferring BrR98 million of debt.
- In the third quarter of 2005, the issuance of a three-year,
BrR210 million FIDC, used to repay costly short-term bank
debts, among others. This is not reflected yet in the
published June 2005 balance sheets.
- Also in the third quarter of 2005, the issue of a four-
year, BrR130 million CCB, which also will be used to repay
costly short-term bank debts. This is also not reflected in
the published balance sheets of June 2005.
- The issue of 18-month US$30 million short-term notes placed
in October 2005. This is an issue out of a US$150 million
program, and also targets to enhance Cataguazes-Leopoldina
financial flexibility, although its primary strategy is not
to make use of the remaining portion of the program.
Conversely, keeping the program opened should provide for a
potential source of liquidity, if necessary.
- The plan to issue a new US$100 million (BrR220 million)
long-term, local currency-denominated transaction in the
fourth quarter of 2005, which the Cataguazes group's
management is currently working on. This issue is most
likely to have a five-year tenor.
- The planned three-year, BrR85 million syndicated deal to be
closed also in the fourth quarter of 2005.
According to our projections, those actions should be enough to
meet the group's total financial needs for 2005, to materially
reduce the Cataguazes group's interest burden and short-term
debt, and also to enhance its total debt amortization profile,
which has placed substantial downward pressure on ratings.
Considering those transactions, during the next year, the
Cataguazes group's cash flow generation is expected to improve
as a result of the reduction of interest burden, and short-term
debt is supposed to also materially shrink, thus diminishing the
existing refinancing risk.
The Cataguazes group distributed 6,500 gigawatts (GWh) of
electricity in 2004 to 1.8 million consumer units. The group
consists of five electricity distribution utilities with the
concession to supply energy in four Brazilian states:
- Cataguazes-Leopoldina, operating in part of Minas Gerais
state.
- Empresa Energ‚tica de Sergipe S.A. (Energipe), operating in
Sergipe state, covering 85% of the territory.
- Sociedade An“nima de Eletrificacao da Paraiba (Saelpa) and
Cia de Eletricidade da Borborema (CELB), both operating in
Paraiba state, covering the entire state.
- Cia de Eletricidade de Nova Friburgo (CENF), operating in
the city of Nova Friburgo in the state of Rio de Janeiro.
The group also has 142 MW of installed capacity of electricity
generation, coming from a 87 MW gas-fired thermo power plant and
55 MW of several small hydropower plants. All generation
capacity is directed to serve the group distribution utilities.
Liquidity
The Cataguazes group's liquidity until June 2005 has been very
weak, due to short-term debt concentration, especially very
expensive working capital loans, despite the cash holdings
amounting to BrR140 million. In June 2005, total gross short-
term debt attained BrR747 million--61% of total debt, of which
BrR390 million were working capital loans. However, this debt
already fell to some BrR570 million (BrR430 million, net of cash
holdings), due to the issues of the FIDC and CCB (both already
placed). Going further, until the end of 2005, financial
statements are expected to reflect the 18-month US$30 million
short-term notes, the new US$100 million deal, and the BrR85
million new syndicated deal; which should reduce its short-term
debt exposure and improve the amortization schedule for the
coming years. When the new US$100 million deal placement and
syndicated transaction close, we expect the Cataguazes group to
have in December 2005 total short-term debt of about BrR350
million (BrR200 million, net of cash holdings), which is
equivalent to 27% of the total indebtedness, but only a small
portion of the total would be working capital loans--the large
portion would be maturities of long-term debt. However,
analyzing our forecast of working capital loans net of cash
holdings, the group would represent a tiny amount.
Standard & Poor's also expects that after the Cataguazes group's
capital structure improves, it could be able free a major
portion of marketable securities held in reserve accounts by
renegotiating the terms and conditions set forth in some loans,
and in this case, using the released resources also to repay
short-term debt and to enhance financial flexibility.
Consolidated debts of the group totaled BrR1.2 billion in June
2005, as follows:
- BrR510 million of long-term, amortizing financings with
Banco Nacional de Desenvolvimento Econ“mico e Social
(BNDES);
- BrR390 million of working capital loans with several banks;
- BrR150 million of existing debentures; and
- BrR173 million of other financings.
Excluding the working capital loans, which present shortened due
dates, the amount of these debts that are coming due are around
BrR270 million in 2005, BrR250 million in 2006, BrR150 million
in 2007, and the rest from 2008 on.
Outlook
The negative outlook on Cataguazes-Leopoldina's ratings in
global and national scales reflects the refinancing risk imposed
by the large amount of high-cost, short-term debt, and the
resulting tight cash flow protection indicators. The outlook
might be revised to stable, after the company concludes the
planned new US$100 million new long-term deal placement and
closes the BrR85 million syndicated deal, which is forecast to
happen at the end of 2005 and will be used to replace short-term
debt and will ultimately result in improved liquidity.
Therefore, in a scenario of stable outlook, Standard & Poor's
would expect the group to post short-term debt equal or lower
than 30% of the total debt, to materially reduce, and
continually reduce, the level of working capital loans, and to
drop the level of interest burden. This would allow the
Cataguazes group to show indicators of FFO to interest coverage
in the 1.85x area, FFO to total debt around 12.5%, and total
debt to total capitalization of nearly 50%, by March 2006.
Conversely, if the new US$100 million deal placement and the
BrR85 million syndicated deal fail, thus restraining the
Cataguazes group's ability to post the expected measures, the
ratings would be lowered to 'B' ('brBBB-' in Brazil national
scale) as a result of a deterioration in the refinancing risk.
Primary Credit Analyst: Marcelo Costa, Sao Paulo
(55) 11-5501-8955; marcelo_costa@standardandpoors.com
SABESP: To Reduce Commercial, Residential Rates' Disparity
----------------------------------------------------------
Sao Paulo state water utility Sabesp (NYSE: SBS) is considering
increasing water rates for residential users to reduce the
disparity in tariffs between commercial and residential users,
according Business News Americas.
At present, consumption of a cubic meter of water is billed at
an average BRL1.80. However, commercial rates can reach upwards
of 150% of that amount, while a regular residence would pay 25%
below that figure and people that live in government housing
units pay 75% less.
To reduce the disparity, Sabesp marketing head Maria Lucia
Tiballi said the Company may freeze rates for commercial users
and gradually increase the tariff for residential use.
Sabesp is the largest basic services supplier in Brazil in terms
of clients, supplying water and sanitation services to nearly 25
million people in Sao Paulo state.
VARIG: Docas Deal Cues TAP to Withdraw From Bidding
---------------------------------------------------
Portuguese airline TAP will withdraw from the bidding for
embattled Brazilian flagship airline Varig, reports AFX.
The move came after Fundacao Rubem Berta (FRB), Varig's majority
shareholder, provisionally agreed to sell a controlling stake to
Brazilian investment firm Docas Investimentos.
Docas, a conglomerate controlled by multimillionaire businessman
Nelson Tanure, is proposing to pay US$100 million to buy a 25%
stake in FRB. Docas further agreed to pay US$12 million to rent
another 42% stake in FRB for a period of 10 years.
Separately, Docas has also agreed to pay US$139 million to buy
Varig's profitable cargo and maintenance subsidiaries.
The proposal appeared to shut out TAP, which agreed to pay US$62
million for the units in September as part of a bid to seize
control of Varig. The purchase of Varig's subsidiaries was part
of a bailout proposal that included an offer to invest US$500
million in the restructuring of Varig.
Still, judges at a Rio de Janeiro court said the Docas deal had
to be approved at a meeting of Varig's creditors on Dec. 19.
Last month, Varig creditors approved a rescue plan submitted by
TAP, which enabled the Company to avoid the confiscation of 40
leased aircraft.
===========================
C A Y M A N I S L A N D S
===========================
BAILEY COATES: To be Placed into Voluntary Winding Up
-----------------------------------------------------
BAILEY COATES GENERAL PARTNER LIMITED
(In Voluntary Winding Up)
("the Company")
The Companies Law (2004 Revision)
The following special and ordinary resolutions were passed by
the shareholder of the Company on 7th November 2005:
As a special resolution: THAT the Company be placed in
voluntary winding up;
As an ordinary resolution: THAT G. James Cleaver and Gordon I.
MacRae of Kroll (Cayman) Limited. P.O. Box 1102GT, Grand
Cayman, be appointed liquidators of the Company with powers to
act jointly and severally.
Creditors of the Company are required on or before 12th January
2006 to send in their names and addresses and the particulars of
their debts or claims and the names and addresses of their
attorneys-at-law (if any) to the undersigned, and if so required
by notice in writing from the said liquidators to come in and
prove the said debts or claims at such time and place as shall
be specified in such notice or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.
CONTACT: GORDON I. MACRAE
Joint Voluntary Liquidator
Contact for enquiries: David Griffin
Kroll (Cayman) Limited
4th Floor Bermuda House
Cayman Financial Centre, Grand Cayman
Cayman Islands
Telephone: +1 (345) 946 0081
Facsimile: +1 (345) 946 0082
BOTL ASSET: Proofs of Debt Due Jan. 12
--------------------------------------
BOTL ASSET FUNDING CORPORATION
(In Voluntary Liquidation)
The Companies Law (2004 Revision)
Take notice that the following special resolution was passed by
the shareholders of the abovementioned company on 29th November
2005.
THAT the company be wound up voluntarily and that Piccadilly
Cayman Limited of PO Box 10632 APO, George Town, Grand Cayman,
be and is hereby appointed as liquidator for the purposes of
winding up the Company and that Piccadilly Cayman Limited shall
have the power to bind the company for the purposes of such
winding up.
Creditors of the Company are to prove their debts or claims on
or before 12th January 2006 and to establish any title they may
have under the Companies Law (2004 Revision), or to be excluded
from the benefit of any distribution made before the debts are
proved or from objecting to the distribution.
CONTACT: ELLEN J. CHRISTIAN
For and on behalf of Piccadilly Cayman Limited
Voluntary Liquidator
Contact for enquiries: Ellen J. Christian
Telephone: 345 945 9208
Fax: 345 945 9210
c/o BNP Paribas Private Bank & Trust Cayman Limited
3rd Floor Royal Bank House, Shedden Road
George Town, Grand Cayman
CALLIDUS EUROPEAN: Kicks Off Voluntary Liquidation
--------------------------------------------------
CALLIDUS EUROPEAN EQUITY TRADING LIMITED
(In Voluntary Liquidation)
(The "Company")
The Companies Law (2004 Revision)
Take notice that the following special resolutions were passed
by the shareholder of this Company on 16th November 2005.
THAT the Company be placed into voluntary liquidation forthwith;
and THAT Ian Wight and Stuart Sybersma of Deloitte be appointed
liquidators.
Creditors of the Company are to prove their debts or claims on
or before 12th January 2006, and to establish any title they may
have under the Companies Law (2004 Revision), or to be excluded
from the benefit of any distribution made before the debts are
proved or from objecting to the distribution.
CONTACT: STUART SYBERSMA
Joint Voluntary Liquidator
Contact for enquiries: Nicole Ebanks, Deloitte
P.O. Box 1787 GT, Grand Cayman
Cayman Islands
Telephone: (345) 949 7500
Facsimile: (345) 949 8258
CALLIDUS EUROPEAN (MASTER): To be Voluntarily Liquidated
--------------------------------------------------------
CALLIDUS EUROPEAN EQUITY TRADING MASTER LIMITED
(In Voluntary Liquidation)
(The "Company")
The Companies Law (2004 Revision)
Take notice that the following special resolutions were passed
by the shareholders of this Company on 16th November 2005.
THAT the Company be placed into voluntary liquidation forthwith;
and THAT Ian Wight and Stuart Sybersma of Deloitte be appointed
liquidators.
Creditors of the Company are to prove their debts or claims on
or before 12th January 2006, and to establish any title they may
have under the Companies Law (2004 Revision), or to be excluded
from the benefit of any distribution made before the debts are
proved or from objecting to the distribution.
CONTACT: STUART SYBERSMA
Joint Voluntary Liquidator
Contact for enquiries: Nicole Ebanks, Deloitte
P.O. Box 1787 GT, Grand Cayman
Cayman Islands
Telephone: (345) 949 7500
Facsimile: (345) 949 8258
CASA PREFERRED: Voluntary Liquidation Begins
--------------------------------------------
Casa Preferred Investors
(In Voluntary Liquidation)
Companies Law (As Amended)
TAKE NOTICE THAT the following resolution was passed by the
shareholders of the Company by written resolution dated October
31, 2005:
RESOLVED that the Company be voluntarily wound up and John
Cullinane and Derrie Boggess c/o Walkers SPV Limited, P.O. Box
908, George Town, Grand Cayman, Cayman Islands, be appointed as
joint liquidators to act for the purposes of such winding up.
NOTICE IS HEREBY GIVEN that the creditors of the Company which
is being wound up voluntarily are required within 30 days of the
publication of this notice, to send in their names and addresses
and the particulars of their debts and claims and the names and
addresses of their attorneys-at-law (if any) to the undersigned.
In default thereof, they will be excluded from the benefit of
any distribution made before such debts are proved.
Date of Publication: November 30, 2005
CONTACT: John Cullinane and Derrie Boggess
Joint Voluntary Liquidators
John Cullinane
c/o Walkers SPV Limited
Walker House, P.O. Box 908
George Town, Grand Cayman
Telephone: (345) 914-6305
CYDONIA CAPITAL: To Wind Up Voluntarily
---------------------------------------
Cydonia Capital, Ltd.
(In Voluntary Liquidation)
The Companies Law (2004 Revision)
TAKE NOTICE THAT the following special resolution was passed by
the sole shareholder of Cydonia Capital, Ltd. on November 16,
2005:
THAT the Company be voluntarily wound up under the Companies Law
(2004 Revision) and that Olympia Capital (Cayman) Limited of
Williams House, 20 Reid Street, Hamilton HM 11, Bermuda, be
appointed as liquidator, and that the liquidator be and is
hereby authorized to do any such act or thing considered by such
liquidator to be necessary or desirable in connection with the
liquidation of the Company and the winding up of its affairs.
Creditors of Cydonia Capital, Ltd., which is being wound up
voluntarily, are required on or before December 30, 2005 to send
in their names and addresses and particulars of their debts or
claims and the names and addresses of their attorneys-at-law (if
any) to the undersigned, the Liquidator of the Company, and if
so required by notice in writing from the said Liquidator,
either by their attorneys-at-law or personally, to come in and
prove the said debts or claims no later than the date set for
the final meeting of shareholders to be held at the
aforementioned address of the Liquidator at 11:00 a.m. on
January 13, 2006 convened for the purpose of approving the final
distributions and accounts of the Company, in default thereof,
they will be excluded from the benefit of any distribution made
before such debts are proved.
CONTACT: Olympia Capital (Cayman) Limited
Voluntary Liquidator
Carolynn D. Hiron or Sasha Castle
Olympia Capital (Cayman) Limited
Williams House, 20 Reid Street
Hamilton HM 11, Bermuda
Telephone: (441) 298-5034
Facsimile: (441) 292-3358
EISBERG FINANCE: Enters Into Voluntary Liquidation
--------------------------------------------------
Eisberg Finance Ltd
(In Voluntary Liquidation)
The Companies Law (2004 Revision)
TAKE NOTICE THAT the following resolution was passed by the sole
shareholder of Eisberg Finance Ltd by written special resolution
dated November 23, 2005:
RESOLVED AS A SPECIAL RESOLUTION that the Company be and hereby
is placed into voluntary liquidation and that Sean Flynn be and
is hereby appointed liquidator for the purposes of such
liquidation.
NOTICE IS HEREBY GIVEN that the creditors of Eisberg Finance Ltd
which is being wound up voluntarily are required within 21 days
of this notice, to send in their names and addresses and the
particulars of their debts and claims and the names and
addresses of their attorneys-at-law (if any) to the undersigned.
In default thereof, they will be excluded from the benefit of
any distribution made before such debts are proved.
Date of Publication: November 28, 2005
CONTACT: Mr. Sean Flynn, Voluntary Liquidator
227 Elgin Avenue, P.O. Box 852GT
Grand Cayman
FERRUM FUND: Appoints Liquidators for Wind Up
---------------------------------------------
Ferrum Fund
(In Voluntary Liquidation)
The Companies Law (2004 Revision)
Take notice that the following special resolutions were passed
by the shareholders of Ferrum Fund on November 18, 2005.
THAT the Company be placed into voluntary liquidation forthwith;
and
THAT Ian Wight and Stuart Sybersma of Deloitte be appointed
liquidators.
Creditors of the Company are to prove their debts or claims on
or before January 12, 2006, and to establish any title they may
have under the Companies Law (2004 Revision), or to be excluded
from the benefit of any distribution made before the debts are
proved or from objecting to the distribution.
CONTACT: Mr. Stuart Sybersma, Joint Voluntary Liquidator
Nicole Ebanks, Deloitte
P.O. Box 1787 GT, Grand Cayman
Cayman Islands
Telephone: (345) 949 7500
Facsimile: (345) 949 8258
===============
C O L O M B I A
===============
TENDERCO: Announces Expiration, Termination of Offer
----------------------------------------------------
Transtel Tenderco, Ltd. ("Tenderco"), a wholly-owned subsidiary
of Transtel S.A. ("Transtel"), announced Wednesday that its
previously announced Offer to Purchase all outstanding Units, as
described in the Offer to Purchase and Consent Solicitation
Statement, dated October 28, 2005, as amended by Supplement No.
1 thereto, dated November 8, 2005 (as so amended, the
"Statement"), expired at 8:00 a.m. New York City time, on
Tuesday, December 13, 2005, and that the tender offer and
related consent solicitation are being terminated.
The tender offer and consent solicitation are being terminated
because the Funding Condition, as described in the Statement,
has not been satisfied. The terms of the tender offer and
consent solicitation permit, subject to applicable law,
Tenderco, in its sole discretion, to terminate the tender offer
or consent solicitation at any time. Transtel will continue to
seek opportunities to refinance its obligations.
Tenderco has instructed HSBC Bank USA, National Association, the
depositary for the tender offer, to return to the tendering
holders all Units that were tendered pursuant to the offer.
The complete terms and conditions of the tender offer and
consent solicitation are described in the Statement, copies of
which may be obtained by contacting:
MacKenzie Partners, Inc. - Information Agent
Tel: +1 (212) 929-5550 (collect)
Toll-Free: (800) 322- 2885
UBS Investment Bank - Dealer Manager, Solicitation Agent
Tel: +1 (203) 719-4210 (collect)
Toll Free: (888) 722-9555, extension 4210
Transtel is the largest fixed-line private telecommunications
company in Colombia, with a modern digital platform and
broadband capability. Transtel owns and operates seven telephone
systems and one cable system, providing voice, data and other
media services to residential and commercial subscribers in
Cali, Colombia's second largest city, and nine other cities in
southwestern Colombia with an aggregate population of
approximately 3.6 million people.
CONTACT: MacKenzie Partners, Inc.
Tel: +1-212-929-5500
Toll Free: 1-800-322-2885
E-mail: proxy@mackenziepartners.com
===========
M E X I C O
===========
AEROMEXICO: Conesa to Remain as Head of Airline
-----------------------------------------------
The board of airline holding company Cintra SA has decided to
keep chairman Andres Conesa at the helm of Aeromexico following
the sale of its other main airline Mexicana, reveals Dow Jones
Newswires.
Last month, Cintra agreed to sell Mexicana to hotel operator
Grupo Posadas for US$165 million in cash plus US$294 million in
debt and US$977 million of airplane lease contracts. It rejected
the remaining bid for Aeromexico, deeming it too low.
Cintra will try to sell Aeromexico, the nation's biggest
airline, for a second time early next year. The government will
announce in January whether it will sell shares in Aeromexico or
call a new auction for a controlling stake, Conesa said.
ASARCO: Ten Affiliates Want Until March 7 to File a Plan
--------------------------------------------------------
Ten affiliate debtors -- direct or indirect wholly owned
subsidiaries of ASARCO LLC -- ask the U.S. Bankruptcy Court for
the Southern District of Texas in Corpus Christi to extend the
deadline in which they may file their Chapter 11 plan of
reorganization to March 7, 2006, and solicit acceptances of the
Plan to May 6, 2006.
The Affiliate Debtors that filed for bankruptcy on Oct. 13,
2005, are:
* ASARCO Master, Inc.,
* Bridgeview Management Company, Inc.,
* ASARCO Oil and Gas Company, Inc.,
* Government Gulch Mining Company, Limited,
* ALC, Inc.,
* American Smelting and Refining Company
* AR Mexican Explorations, Inc.,
* AR Sacaton, L.L.C.,
* Salero Ranch, Unit III, Community Association, Inc., and
* Covington Land Company.
Pursuant to Section 1121(b) of the Bankruptcy Code, only the
debtor may file a plan until 120 days after the petition date.
No other party-in-interest may file a plan unless the debtor has
failed to obtain acceptances from all classes in its plan within
180 days after the petition date. However, the Court may
increase the 120-day and the 180-day exclusivity period on a
party's request made within appropriate periods in accordance
with Section 1121(d).
The extension requested is the same date as that in all the
other Debtors' cases.
According to Jack L. Kinzie, Esq., at Baker Botts L.L.P., in
Dallas, Texas, setting the expiration of the exclusivity periods
on the same dates for all the Debtors will assist the Debtors in
the efficient management of the case. An extension will permit
the Debtors to file their Plan, seek approval of their
disclosure statement, and seek Plan confirmation in an orderly
manner and at the least expense. The Debtors can also continue
their efforts to settle various cases and controversies with
their creditor constituencies, increasing the potential for
early payout of allowed claims.
Headquartered in Tucson, Arizona, ASARCO LLC --
http://www.asarco.com/-- is an integrated copper mining,
smelting and refining company. Grupo Mexico S.A. de C.V. is
ASARCO's ultimate parent. The Company filed for chapter 11
protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207).
James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A.
Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter
Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble,
Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the
Debtor in its restructuring efforts. When the Debtor filed for
protection from its creditors,it listed $600 million in total
assets and $1 billion in total debts.
The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-
20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee,
CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about
their asbestos-driven Chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.
Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304),
Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex.
Case No. 05-21346) also filed for chapter 11 protection, and
ASARCO has asked that the three subsidiary cases be jointly
administered with its chapter 11 case. On Oct. 24, 2005,
Encycle/Texas' case was converted to a Chapter 7 liquidation.
(ASARCO Bankruptcy News, Issue No. 11; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
EMPRESAS ICA: Seeks to Complete GACN Deal Before Year-End
---------------------------------------------------------
Engineering and construction concern ICA hopes to conclude
before the end of the year a US$203-million deal to assume
greater control of airport operator North Central Airport Group
(GACN).
Business News Americas reports that government authorities are
currently examining the transaction. But the operation is
expected to proceed without a hitch, as authorities don't seem
to have any objections.
Under the deal, ICA would take control of 74.5% of the company
controller Seta, and would also buy a stake belonging to the
federal government.
Seta holds 15% of GACN, while the government controls 85%. ICA's
chairman Bernado Quintana already owns 22.4% of Seta and with
the stake that ICA holds, control would reach 74.5% when it buys
25.5% in the US$203 million deal, reports Business News
Americas.
Apart from the 25.5% shareholding in Seta, which was previously
owned by French firm Vinci, this purchase includes ICA
exercising the right to buy 36% of the government's 85%, which
will give it 51% control of the airport operator.
GACN runs 13 airports in western, central and northern Mexico.
CONTACT: Empresas ICA Sociedad Controladora S.A. de C.V.
Col. Escandon Del Migual Hidalgo
Mexico City, 11800
Mexico
Phone: 525-272-9991
URL: http://www.ica.com.mx
TV AZTECA: Azteca America Inks Affiliation Accord With Comcast
--------------------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA) (BMV: TVAZTCA) (Latibex:
XTZA), one of the two largest producers of Spanish-language
television programming in the world, announced Wednesday that
Azteca America -- the company's broadcast television network
focused on the U.S. Hispanic market -- signed an affiliation
agreement with Comcast (Nasdaq: CMCSA CMCSK), the leading
provider of cable, entertainment and communications products and
services in the United States. The agreement provides for
carriage opportunities for Azteca America Network's signal in
U.S. Hispanic markets not covered by over-the-air stations.
Under the agreement, Comcast systems across Hispanic markets in
the United States, with no local terrestrial signal of Azteca
America affiliates, may elect to add the Network's programming
to their line-up.
Comcast currently also features selected programs from Azteca
America as part of its ON DEMAND En Espanol video-on-demand
service, making the shows available to customers of Comcast's
Hispanic programming packages any time they want to watch.
"We are excited about the significant carriage opportunities
with Comcast and expanding the Network's reach in the U.S.
Hispanic community," said Luis J. Echarte, Chairman of Azteca
America Network. "The agreement is geared toward further
boosting Azteca America's coverage, while providing advertisers
with sought-after demographics from new viewerships."
"Azteca America offers unique content that is very popular with
viewers, and we're looking forward to working with them to offer
this exciting service to a wider audience," added David Jensen,
Vice President of International Programming for Comcast. "This
agreement underscores our commitment to offering customers more
choice, control and value."
About Azteca America
Azteca America is the fastest-growing Hispanic network in the
United States. The network is a wholly owned subsidiary of TV
Azteca S.A. de C.V., one of the two largest producers of
Spanish-language television content in the world. Azteca America
currently has presence in 39 Hispanic markets, including: Los
Angeles, New York, Miami, Houston, Chicago, Dallas, San Antonio,
San Francisco-Oakland-San Jose, Phoenix, Brownsville-McAllen,
Albuquerque, San Diego, Fresno-Visalia, Sacramento-Stockton-
Modesto, Denver, Orlando, Austin, Tampa, Corpus Christi, Tucson,
Las Vegas, Colorado Springs, Monterey-Salinas, Hartford, Salt
Lake City, Bakersfield, West Palm Beach-Ft. Pierce, Santa
Barbara, Palm Springs, Omaha, Yakima, Naples-Ft. Myers, Wichita,
Reno, Boise, Victoria, Oklahoma City, Charleston and
Chattanooga.
CONTACT:
Bruno Rangel
+011-52-55-1720-9167
jrangelk@tvazteca.com.mx
Rolando Villarreal
+011-52-55-1720-0041
rvillarreal@gruposalinas.com.mx
Daniel McCosh
+011-52-55-1720-0059
dmccosh@tvazteca.com.mx
Jenni Moyer
+1-215-851-3311
jenni_moyer@comcast.com
Chris Ellis
+1-215-981-7771
chris_ellis@comcast.com
=====================
P U E R T O R I C O
=====================
CENTENNIAL COMMUNICATIONS: Discloses 2nd Qtr. Operating Results
---------------------------------------------------------------
Centennial Communications Corp. (NASDAQ: CYCL) reported
preliminary operating results for the fiscal second quarter of
2006. The Company expects to report approximately 1.34 million
total wireless subscribers for the fiscal second quarter, which
compares to 1.11 million for the year-ago period and 1.31
million for the previous quarter ended August 31, 2005. The
Company expects to report approximately 326,400 total access
lines and equivalents for the fiscal second quarter. Centennial
expects to report full financial and operating results for the
fiscal second quarter of 2006 on or before January 6, 2005.
Centennial Segment Highlights
U.S. Wireless Operations
-- U.S. wireless expects to end the quarter with approximately
614,100 total subscribers including 48,200 wholesale
subscribers. This compares to 564,900 for the year-ago
quarter including 20,000 wholesale subscribers and to
592,600 for the previous quarter ended August 31, 2005,
including 43,200 wholesale subscribers.
-- At the end of the fiscal second quarter, approximately 56%
of U.S. retail wireless subscribers were on GSM calling
plans. Postpaid retail subscribers increased 12,300 from
the fiscal first quarter of 2006, as the build-out of
contiguous footprint in Grand Rapids and Lansing, MI and a
robust marketing effort supported renewed subscriber
growth.
-- Postpaid churn is expected to be approximately 2.0 percent
for the fiscal second quarter of 2006, compared with 2.1
percent for the year-ago quarter and 2.1 percent for fiscal
first quarter of 2006.
Caribbean Wireless Operations
-- Caribbean wireless expects to end the quarter with
approximately 724,100 subscribers, which compares to
543,400 for the prior-year quarter and to 715,000 for the
previous quarter ended August 31, 2005.
-- Customer growth benefited from solid prepaid subscriber
growth in the Dominican Republic, partially offset by weak
postpaid subscriber growth due to higher churn in both the
Dominican Republic and Puerto Rico. Centennial continues
to emphasize prepaid and hybrid plans in the Dominican
Republic, shifting its marketing effort away from postpaid
plans.
-- Postpaid churn is expected to be approximately 3.2% for the
fiscal second quarter of 2006, compared with 2.2% for the
year-ago quarter and 3.2% for the fiscal first quarter of
2006.
Caribbean Broadband Operations
-- Switched access lines are expected to total approximately
66,700 at the end of the fiscal second quarter, an increase
of 10,200 lines, or 18% from the prior-year quarter.
Dedicated access line equivalents are expected to be
259,700 at the end of the fiscal second quarter, a 13%
year-over-year increase.
Centennial Communications, (NASDAQ:CYCL) --
http://www.centennialwireless.com/-- based in Wall, New Jersey,
is a leading provider of regional wireless and integrated
communications services in the United States and the Caribbean
with approximately 1.2 million wireless subscribers and 300,000
access lines and equivalents. The U.S. business owns and
operates wireless networks in the Midwest and Southeast covering
parts of six states. Centennial's Caribbean business owns and
operates wireless networks in Puerto Rico, the Dominican
Republic and the U.S. Virgin Islands and provides facilities-
based integrated voice, data and Internet solutions. Welsh,
Carson, Anderson & Stowe and an affiliate of the Blackstone
Group are controlling shareholders of Centennial.
At Aug. 31, 2005, Centennial Communications' balance sheet
showed a $465.3 million stockholders' deficit, compared to a
$481.9 million deficit at May 31, 2005.
As reported in the Troubled Company Reporter on Sept. 23, 2005,
Standard & Poor's Rating Services placed its long- and short-
term credit ratings for Wall, New Jersey-based regional wireless
provider Centennial Communications Corp. and its related
entities (including Centennial Cellular Operating Co. LLC) on
CreditWatch with developing implications. This includes the 'B-
' corporate credit rating and 'B-2' short-term rating on
Centennial. (Troubled Company Reporter, Thursday, Dec. 15, 2005,
Vol. 9, No. 297)
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Sheryl Joy P. Olano, Editors.
Copyright 2005. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each. For subscription
information, contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *